GMA Network denies MVP buyout rumors; shares surge

MANILA, Philippines - Shares of GMA Network Inc. were heavily traded yesterday and were among the 10 top gainers as rumors swirled that the broadcast firm is subject of a takeover.

GMA, however, issued a statement yesterday, dispelling speculations of a buyout by the group of telecommunications magnate Manuel V. Pangilinan.

“There is no truth to the rumor ongoing around in social media sites and the Internet that Mr. Pangilinan has bought GMA Network. In fact, there is no negotiation going on between GMA and Mr. Pangilinan regarding the latter’s acquisition of GMA-7,” the network, which operates TV channels 7 and 11, said.

GMA shares rose 4.8 percent yesterday to close at P6.50 each on turnover of 606,600 shares valued at P3.93 billion.

Several sources, however, still claim that Pangilinan’s group has revived talks with the GMA management, with two of three major individual shareholders – the Duavit and Jimenez families – reportedly receptive to a deal.

GMA chairman Felipe Gozon, another majority shareholder of the network, is reportedly opposed to the deal, which was reported in blogs to be worth P500 billion. GMA had a market capitalization of P20.84 billion.

It would be recalled that in 2001, Pangilinan, through Mediaquest Holdings Inc., had planned to purchase two-thirds of GMA for P8.5 billion. However, the plan fizzled out due to valuation problems.

Mediaquest Holdings is a unit of the Beneficial Trust Fund of PLDT, which controls rival station TV 5 through ABC Development Corp. It also owns Nation Broadcasting Corp. (NBC) and Cignal Digital.